Is STEPN Failing to Generate Profits? Exploring the Factors Behind Its Downturn

What Is STEPN?

STEPN is a blockchain game built around the “Move-to-Earn” concept, enabling users to earn cryptocurrency by walking or running. Players purchase NFT sneakers within the app and earn crypto assets by engaging in real-world physical activity. Launched on the Solana chain in December 2021, STEPN’s simple, fitness-based earning model quickly gained traction, leading to a global surge in popularity through early 2022.

Two tokens operate within the game: GST (Green Satoshi Token) and GMT (Green Metaverse Token). GST primarily covers in-game expenses like sneaker repairs and upgrades. GMT serves as the governance token, allowing users to participate in decision-making and earn staking rewards. This dual-token system stabilizes the in-game economy and incentivizes long-term user engagement.

Following a brief spike in NFT sneaker prices, overall crypto market stagnation led to a sharp drop in profitability, exposing critical sustainability challenges for the Move-to-Earn model.

GST Token Price Trends (2021–2025)

GST (Green Satoshi Token), STEPN’s in-game reward token, saw dramatic price swings—a hallmark risk for the Move-to-Earn ecosystem.

GST debuted at around $1.85 in December 2021. By April 2022, surging NFT sneaker demand and rapid user growth pushed prices to about $9. The concept of earning substantial income simply by walking captured global attention. However, as the broader crypto market declined and user growth stalled, GST crashed by more than 99%.

Initially, heavy GST consumption for NFT sneaker creation and upgrades drove up prices. Once user growth stalled, token inflation set in, saturating the market and breaking supply-demand equilibrium. This triggered a massive price collapse. Further shocks—such as China’s user ban in May 2022 and the collapse of Terra and FTX—left GST nearly worthless. These severe fluctuations highlight the critical importance of tokenomics design.

NFT Sneaker ROI and Earnings Transformations

During STEPN’s peak in early 2022, NFT sneaker investment payback periods were extremely short—often less than a month. With three sneakers, users could earn about 20 GST per day, producing exceptionally high monthly ROI and annualized returns up to 1,000%. Users holding nine sneakers could see daily earnings around $85, equating to roughly 480% annual ROI. Some reported daily profits of $300–$400, making the “earn by walking” concept highly compelling.

As GST prices collapsed and platform rewards were restricted, this high-profit environment unraveled quickly. By 2023, basic sneakers earned about 8 GST per day, but repair costs consumed 3 GST, leaving net earnings of just 5 GST (around $0.06). This dramatic reduction in profitability led to widespread disappointment and accelerated user departures.

NFT sneaker prices themselves plunged from several hundred dollars at their peak to below a few dollars by 2023, making payback periods stretch to 9–10 months or longer. Average daily earnings per user dropped from $40–$50 in 2022 to just a few cents in 2023—a 99.9% decrease. This drastic change exposed fundamental sustainability issues with the Move-to-Earn model.

User Growth and Decline

STEPN’s user base grew explosively in early 2022, then contracted just as rapidly, offering key lessons in project sustainability.

In early 2022, word-of-mouth and social media—especially success stories on Twitter and YouTube—fueled a surge in new users. According to official reports, monthly active users (MAU) reached about 1.7 million in April, peaking at over 3 million in May, with daily active users (DAU) hitting 800,000. STEPN was recognized as the world’s most prominent Move-to-Earn project.

After the May 2022 peak, user numbers declined sharply due to falling token prices and reduced profitability. By October 2022, MAU dropped to roughly 99,000 and DAU to about 5,800—over an 80% decline in just a few months. The trend continued, with MAU falling below 35,000 by April 2024, marking a loss of over 98% of peak users.

Major factors behind this rapid user decline include:

• Collapse in Profitability: The sharp drop in earnings led most casual users to lose motivation and stop logging in.
• Emergence of Competing Apps: From mid-2022, other Move-to-Earn apps began drawing users away with more attractive reward systems.
• Seasonality and Fading Trends: Outdoor exercise was popular in spring and summer 2022, but interest waned as seasons changed and new trends emerged.
• Stricter Anti-Bot and Fraud Measures: After mid-2022, STEPN purged fraudulent users, temporarily reducing the user count. While these measures improved long-term health, they contributed to short-term declines.

Since early 2025, daily active users have begun to rise again, driven by dedicated community members and investors hoping for a rebound. This recovery suggests STEPN’s new strategies may be yielding results.

Key Drivers of Profitability Decline

STEPN’s high initial profitability was both its main attraction and biggest vulnerability. The principal factors driving the decline include:

Tokenomics (Token Design)

STEPN’s revenue model depended on new users joining and purchasing NFT sneakers to sustain GST demand. Critics labeled this a classic Ponzi scheme—collapsing when new participant flow dries up.

• In the growth phase, constant new capital supported high profits for existing users. After May 2022, declining new user numbers triggered a GST price crash. This structural flaw highlights the importance of sustainable tokenomics.
• Unusually short payback periods (about 30 days) and annualized ROI of 10x were always unsustainable, as experts warned. These high returns relied entirely on fresh capital inflows and were doomed once growth slowed.

Excess GST Token Issuance (Inflation)

STEPN’s GST reward token had no supply cap and limited use cases, mostly sneaker upgrades and repairs. This flawed token design was a primary cause of the price collapse.

• At peak user counts, GST burn was active, but as growth stalled, the market flooded with GST and prices crashed. Oversupply outstripped demand, eroding token value rapidly.
• By May 2023, GST had dropped 99.9% from peak, with daily earnings falling by the same margin. This extreme inflation underscored the need for balanced token supply and demand.

NFT Sneaker Price Surge and Inflation

During the boom, sneaker NFT prices soared (from 1–5 SOL to 10–14 SOL, over $1,000), only to crash as earnings dried up.

• Many users bought sneakers at inflated prices and couldn’t recover their investment when earnings dropped. This led to significant losses for investor participants.
• Oversupply of NFT sneakers (over 700,000 by end-2022) accelerated the price crash as supply far exceeded demand.

Rise of Competing Apps and User Exhaustion

From mid-2022, STEPN’s success inspired a wave of similar apps (Sweatcoin, Genopets, Walken, etc.).

• Users gravitated toward higher-earning alternatives. New projects learned from STEPN’s issues, offering more attractive rewards and sustainable tokenomics.
• The novelty of “earning by walking” faded, causing many casual users to leave. As the Move-to-Earn concept lost freshness, attention shifted to new trends.

Core Reasons for Profitability Collapse and M2E Market Competition

STEPN’s profitability followed a “boom and bust” cycle—initially attracting users with high rewards, then collapsing as growth stalled, competition rose, and the market cooled. This pattern mirrors previous “Play-to-Earn” examples (like Axie Infinity) and highlights the limits of incentive-driven models lacking external revenue sources.

These models depend on new users funding rewards for existing participants, and inevitably collapse when growth slows. STEPN’s experience is a lesson in building sustainable business models.

Competition and the State of Move-to-Earn

STEPN’s rise and fall mirror trends across the Move-to-Earn (M2E) industry. Several competitors have emerged, but rather than overtaking STEPN directly, the entire market contracted. By early 2023, M2E token values fell roughly 75% from peak, with STEPN particularly affected. This industry-wide downturn highlights fundamental issues for all Move-to-Earn projects.

Sweatcoin

Launched in 2014 as a Web2 fitness app, Sweatcoin built a user base of over 100 million before introducing the crypto asset “SWEAT” in September 2022.

• Users don’t need upfront NFT investment; the model is driven mainly by ad revenue—a key difference from STEPN, making participation more accessible.
• Despite its massive user base, SWEAT token value dropped sharply after launch. By 2023, daily earnings fell to just a few cents, mirroring STEPN’s challenges and highlighting issues facing the Move-to-Earn concept.

Genopets

Genopets is a Solana-based app featuring digital pet NFTs that grow as you walk. Earning requires special land NFTs, so entry barriers are higher.

• While the KI token dropped over 96% from peak, Genopets users earned about $0.26 per day in 2023—higher than STEPN’s $0.06. This relative strength stems from unique gameplay and a differentiated revenue model.
• Although Genopets didn’t surpass STEPN in user numbers, it received recognition for sustaining better profitability. Its game-centric design suggests potential for more robust models.

Other M2E Apps (Walken, etc.)

Walken is a character-raising game; its token fell a relatively moderate 71%.

• Still, daily earnings in 2023 averaged just $0.10, making sustained user engagement difficult for most.
• Other apps like Dustland and Step App (FITFI) enjoyed brief popularity before similar declines, illustrating fundamental challenges across the entire sector.

The total M2E market cap nosedived from over $1 billion in May 2022 to about $270 million by early 2023. This steep drop signals waning investor confidence in Move-to-Earn sustainability.

STEPN’s Response (2022–2025)

After its peak and subsequent user exodus, STEPN’s team prioritized active communication to address user concerns and share a long-term vision.

In mid-2022, co-founder Yawn Rong delivered several key messages:

• He stressed STEPN’s mission was “not just profit, but promoting a healthy lifestyle.” This shift aimed to move from short-term gains to long-term value creation.
• He acknowledged the GST crash and announced new initiatives—GMT reward mode, a DEX and marketplace, and real-world product launches—to diversify the platform and expand revenue sources.

In October 2022, rumors of “laying off 100 staff” and “major downsizing” spread, but STEPN immediately denied these, clarifying only volunteer moderators were affected and that hiring continued, to ease community concerns about project continuity.

In 2023–2024, official messaging emphasized new features like partnerships with Adidas, the launch of STEPN GO, and the Haus system, shifting focus to “fun and user participation over short-term profit.” This marks STEPN’s evolution from Move-to-Earn to a health and lifestyle platform.

Influencer and Expert Reactions

During STEPN’s early boom in 2022, influencers enthusiastically promoted the project, with many sharing large profits on YouTube and Twitter, fueling STEPN’s reputation as an “easy money” crypto app.

As issues surfaced, criticism from analysts and top influencers intensified.

• Vader Research called STEPN a “Ponzi-like structure destined for collapse,” highlighting fundamental flaws in its tokenomics and warning investors.
• Prominent crypto influencers harshly criticized the Move-to-Earn model, likening it to “earning by breathing” and questioning its sustainability.

From 2023, more balanced views emerged.

• CEOs of M2E competitors and some community leaders said, “STEPN failed, but the sector still has potential.” This encouraged the development of more sustainable models without dismissing Move-to-Earn altogether.
• Some advocated learning from sustainability-oriented models like Sweatcoin, incorporating external revenue sources (e.g., advertising) for greater stability.

STEPN’s Outlook

Major 2024 Updates

In 2024, STEPN focused on expanding its platform to improve user experience and reinforce sustainability.

• Realm 4 Launch
  • New users can now join without purchasing NFTs, broadening the user base by lowering barriers to entry.
• Web2 Integration (Apple Pay, Web2 Login)
  • Apple Pay and standard login options make STEPN accessible to users unfamiliar with crypto, enhancing mainstream adoption.
• Sports Brand Partnerships
  • Collaborations with major brands like Adidas introduced exclusive real-world products (e.g., Adidas Ultraboost) linked to NFT sneakers. This strategy merges Web3 fitness with real-world experiences and elevates brand visibility.
• Expanded GMT Token Utility
  • GMT is now usable for sneaker upgrades, perks, and governance voting, increasing demand and supporting token stability.

Key Updates for 2025 (Through April)

Early 2025 saw a focus on boosting user engagement and community vitality through new features.

• Marathon Mode
  • Virtual race events offer NFT and GST/GMT rewards, fostering competition and social interaction. This shifts STEPN from profit-driven participation to fun, fitness-focused experiences.
• Full GMT Earn Implementation
  • Users can now earn GMT directly through physical activity, enhancing reward appeal and motivation.
• Technical Upgrades
  • Multi-Party Computation (MPC) strengthens wallet security, enhancing asset protection.
  • The Ethereum bridge enables seamless cross-chain NFT and token transfers for flexible asset management.
  • Beta AI coaching offers personalized fitness guidance, evolving STEPN into a comprehensive health platform.
  • Sneaker rental system 2.0, powered by smart contracts, increases security and convenience for non-NFT owners.

Future Roadmap (Post-2025)

STEPN’s official roadmap includes additional features planned beyond 2025 (timing TBD), supporting long-term growth and sustainability:

• Quest System
  • Daily, weekly, and monthly quests provide regular reward opportunities, motivating continuous activity.
• Background Mode
  • Earn GST for 3,000 daily steps without worrying about energy or sneaker durability, lowering entry barriers for casual users.
• Referral System
  • Rewards for inviting friends incentivize user growth through referrals.
• GMT Staking
  • Users will be able to stake GMT for rewards, supporting long-term holding and token stability.
• DOOAR Expansion
  • Additional GMT utilities, including NFT trading and project voting, further enrich the ecosystem.
• Donation System
  • Carbon credits purchasable and burnable via GST reinforce STEPN’s commitment to social responsibility.
• Decentralized Wallet Enhancements
  • Multi-chain support and improved UI/UX will streamline NFT management and token transactions, enhancing user experience.

Update & Roadmap Summary Table

Summary: The Road to STEPN’s Comeback

STEPN achieved explosive growth in early 2022, then experienced dramatic downturns in GST price and user numbers. By pursuing new initiatives—including partnerships with real-world asset (RWA) projects and the launch of “STEPN GO”—STEPN is redefining itself as a lifestyle app focused on health and community, rather than pure profit.

Going forward, STEPN’s success will hinge on building a sustainable ecosystem centered on fitness and brand collaboration, not just short-term returns. The project demonstrates both the possibilities and limitations of Move-to-Earn, and points toward new directions for blockchain-powered lifestyle apps. Its evolution will be a critical indicator for the future of Web3-integrated fitness.

FAQ

Why Was STEPN So Profitable at First?

STEPN’s early profitability resulted from gamifying walking and running, aggressive marketing, and strong early user participation. Rising token prices and high transaction volumes enabled users to earn substantial rewards.

What Caused STEPN’s Decline?

STEPN’s decline was triggered by a sharp drop in token prices, shrinking user numbers, and increased competition. As profitability fell, user engagement diminished.

Can STEPN Still Generate Earnings Today, and What Is Its Profitability?

STEPN’s profitability has dropped from its early peak, but users can still earn modest returns through consistent effort and strategic play.

What Are the Risks and Dangers of Investing in STEPN?

Key investment risks include potential scams, inability to recover initial costs, wallet security vulnerabilities, and exposure to market volatility.

How Does STEPN Compare to Other Move-to-Earn Projects (Axie Infinity, Calaxy, etc.)?

STEPN is focused on fitness rewards, while Axie Infinity and Calaxy emphasize gameplay and virtual assets. Axie features a rental system for earnings, which STEPN does not yet offer. STEPN is notable for its rapid user growth.